Equities: Tech volatility but index holds gains – Deutsche Bank

Deutsche Bank strategists describe a volatile Tech session, with AI-linked names swinging sharply. Despite risk-off moves in bonds and a big rally in global rates, the S&P 500 still closed higher and near record levels. Nvidia-related headlines and CoreWeave credit moves framed sentiment, while futures improved after Kevin Warsh’s remarks.

Index resilient despite AI swings

"The Philly Semi index was down over -4% in early trading before rebounding to closing down “just” -0.88% lower but still for its 7th consecutive loss. 10yr US Treasury yields were down -12.7bps due to the risk-off and yet 378 names in the S&P 500 were higher on the day and the index managed to end up with a +0.33% gain and stay within a percent of its record high."

"Even the NASDAQ itself pared back its losses, having hit an intraday low of -1.44% at the open, to scrape a slight +0.08% gain."

"Earlier in Europe, markets put in a relatively stronger performance, as they remained more insulated from the AI-related issues. So the STOXX 600 (+0.38%) actually put in a second consecutive gain, taking the index to a 3-week high. That included particularly strong gains for the FTSE 100 (+1.08%) and France’s CAC 40 (+0.78%), although Italy’s FTSE MIB (-0.72%) was a relative underperformer."

"A recovery in Asian equity markets had already been in full force before Warsh but has continued after. South Korea's chip-heavy KOSPI (+4.28%) is leading gains after tumbling nearly 8% yesterday, a move that pushed the index to its lowest close since April."